Brits make home improvements to the tune of £14,000
Britain's passion for home and garden improvements always increases over a Bank Holiday period as the weather improves and the days get longer. A poll of moneysupermarket.com users has shown that 16 per cent of Brits will be spending money on home improvements over the two bank holiday weekends while additional research shows one in five UK homeowners (19 per cent) will be taking a loan out in the near future to improve their home.
Britain's number one comparison site found a fifth (21 per cent) of homeowners have borrowed money previously for necessary home improvements with the average loan value of £14,037.
Those from the West Midlands had spent the most money on average on their home improvements loan, at £29,586, while Scots spent the least - the average for Scotland was just £6,305, 45 per cent less (£7,732) than the UK average.
Tim Moss, head of loans and debt at moneysupermarket.com, said: "With the warmer weather arriving, and TV full of DIY adverts many people may be thinking about taking advantage of the extra holidays and lighter nights to make changes around their homes. In addition, following the drop in house prices, many people may be left in negative equity and unable to sell their property. Therefore homeowners who had been looking to move may be forced to spend money to improve the value of their property, or simply make changes to ensure they can live happily in their home for an extended period. It is no surprise people will turn to a loan or credit card to make the necessary adjustments to their homes. However before you are tempted to splash out on expensive improvements, think about whether a simple lick of paint or new carpets would have a same impact on your home compared to an expensive fitted kitchen or a conservatory."
The research went on to show that Northern Ireland topped the region with those most likely to have taken a loan for home improvements, with nearly one in three (28 per cent) having taken one out, closely followed by a quarter of people in the East of England who had taken out a loan for home improvements (24 per cent).
Tim Moss continues "The average amount borrowed for home improvements in the UK currently stands at £14,000 and many people may look to take out this lump sum as a loan to pay back over time. There are plenty of competitive options available at the moment, including Alliance & Leicester and M&S personal loans, which both have a current headline rate of 6.9 per cent, over a period of five years. A homeowner could take out a £14,000 personal loan with one of these providers and make regular monthly repayments of £275 per month. The total amount repayable would be £16,511 at the end of the agreement. If you do take out a personal loan for home improvements, make sure you borrow the right amount and don't be tempted to over borrow for the sake of it.
"Credit cards are another option for those looking to make home improvements, however the overall amount paid back can be much higher than with a loan so it is vital consumers opt for a product to suit their needs. Interest free products work well for those borrowing smaller amounts, and are confident they can pay back the balance with the promotional period. Anyone going down this road should seriously consider setting up a direct debit, even just to pay off the minimum amount as missing a payment or paying late could mean you end up losing the promotional rate and having to pay larger than expected interest on the remaining balance."